Housing Improvement Loan (Rural)

 

Housing Improvement Loan (Rural)

TYPE

Housing Loan (Tameer)

 

Currency

USD / AFA

 

Minimum Amount

200 dollars / AFA 14,000

 

Maximum Amount first cycle

10,000 dollars / AFA 700,000

 

Admin Fee

1 % of Disbursed Amount

 

Maximum increment for loan renewal

Subsequent loans, based on project requirement

 

loan depending on repayment capacity, cost of improvement and collateral.

 

Possibility to have two outstanding loans for a customer

Yes, but the sum of the two loan amounts should not exceed 10,000 USD/ AFA 700,000 The debt ratio and repayment capacity of combined debts should stay within

 

FMFB acceptable limits

 

Maximum loan size as a percentage of property value

The loan amount may not exceed forty (40) percent of the appraised value of the home after project completion

 

Maximum loan size as a percentage of project cost

The loan amount may not exceed 70% of the estimated project cost borrowers contribution may only be in the form of cash or kind (sweat equity)

 

Minimum duration

6 months

 

Maximum duration

36 months

 

Installments

Monthly and Seasonal

 

Max. Grace Period per annum (months)

Rural:Seasonal:1-6
Regular (Salaried): 1-3
Urban: 1-3

 

Interest Rate (Declining)

25%

 

Interest Rate (Flat)

14%

 

Saving

Voluntary

 

Security

Third party guaranty

 

Collateral

For Loans below USD 1000 only third party gurantees and above USD 1000 Title Deed (House, Business, land, commercial building etc) + Third Party Guarantee

 

Purpose of Loan

Incremental and new house construction, rebuilding after disasters, renovations and/or expansion of structures, and connection to domestic utilities like water and electricity; septic tanks/wells; construction of boundary walls, windows, kitchen, toilets, tubewell etc.

 
 
 

Eligibility

Valid NID CardAge between 18-65 yearsPositive loan history with FMFB

 
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